The rating on Melville, N.Y.-based Arrow Electronics Inc. reflects the company's leading market position and good operating performance in the face of challenging macroeconomic industry conditions. The electronic distribution industry's highly competitive, relatively low-margin characteristics, as well as the potential for variable profitability and debt protection metrics resulting from volatile industry demand offset company strengths. Arrow is one of the leading global electronic components and computer products distributors. The company reported revenue of $16.8 billion in fiscal 2008 At lower growth rates, competitive pricing pressures make it more challenging for distributors to maintain profitability levels. Nevertheless, acquisitions and ongoing efficiency improvements are expected to enable Arrow to maintain adequate profitability and debt protection metrics. EBITDA margins (adjusted for capitalized operating
